The difference between the price you requested and the actual execution price is called slippage.
Slippage occurs when the market price changes between the time your order is submitted and when it is executed. It can result in a better or worse execution price depending on market conditions.
Why Does Slippage Happen?
Market prices can change multiple times within a second. A market order is executed at the best available price when it reaches the trading server, which may differ from the price displayed when you submitted the order.
Slippage is a normal characteristic of trading in a live market and is not a system error.
Common Factors That Can Cause Slippage
- High volatility. Prices can move rapidly around economic releases, central bank announcements, and unexpected market events.
- Low liquidity. Fewer available buyers or sellers can result in larger price movements between available quotes.
- Market gaps. When a market reopens after a break, the first available price can be far from the last traded price, with nothing in between.
- Large order size. An order larger than the volume available at the best price is filled across several price levels, producing an average fill different from the top of the book.
- Connection latency. A slow or unstable connection adds delay which can allow the market price to change before the order is filled.
Negative and positive slippage
- Negative slippage — filled at a less favourable price than requested: higher when buying, lower when selling.
- Positive slippage — filled at a more favourable price than requested: lower when buying, higher when selling.
Both occur and are passed on to you. Negative slippage is mores easily noticed as it looks like an unexpected cost, while positive slippage just looks like a good fill.
Can Slippage Affect Stop Loss and Take Profit?
Yes. A Stop Loss is not a guaranteed execution price. Once the stop level is reached, the order is triggered and executed at the next available market price. In fast-moving markets or during a market gap, the execution price may differ from the stop level.
A Take Profit may also be executed at a different price when market conditions cause the market to move through the specified level.
Is slippage a fee?
No. Slippage is not a separate charge and does not appear as a fee in your account history.
It is reflected in the difference between the expected price and the actual execution price.
Your requested price is indicative
The price shown on screen when you send an order is indicative only. The execution price is the price available when the order reaches the server.
In stable market conditions, the difference may be small. During volatile or low-liquidity conditions, the difference may be larger.
Check what price your order is actually filled at
- Open the Account History tab in MT4/MT5.
- Find the order and check the Price column against the price you intended.
- The Journal tab shows the order request and the execution with timestamps.
